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Greek Energy Minister to discuss TAP and privatization of DESFA as part of his visit to Azerbaijan

11 February 2015 12:08 (UTC +04:00)

He will discuss with state officials the privatization of DESFA and the TAP pipeline.

A few days ago Mr. Lafazanis told the local media that “the privatization of DESFA has carried on enough” and explained that the outcome would be determined after the European Commission rules on the sale.

On July 31, 2013, the Hellenic Republic Asset Development Fund approved the transaction on purchase of 66% of DESFA shares by SOCAR for €400 mln.

In December, 2013, SOCAR and Greece's state privatisation fund and Petroleum companies signed Contract on Shareholders and the Share Purchase Agreement (SPA).

SOCAR purchases 31% share of DESFA from Greek government, 35% from Hellenic Petroleum SA. HRADF will control share package of the DESFA prior to the SOCAR takes over control on it.

On February 25, 2014, Azerbaijani President Ilham Aliyev issued an order on establishment of closed joint-stock company for effective management of Shahdeniz-2, expansion of South Caucasus Pipeline, TANAP and TAP.

Authorized capital of the CJSC makes $100 mln.

SOCAR has 49%-equity, state – 51% in the capital of CJSC. SOFAZ will provide financing of participation of the state in the Southern Gas Corridor as a shareholder. The funds, which will be repaid, are allocated to the CJSC as long-term investments under the condition.